Binance Eyes India’s Role in Leading Global Crypto Rules by 2025
India’s changing stance on cryptocurrency regulation is
drawing international focus. In 2024, significant advancements in crypto
adoption and institutional involvement were observed, with Bitcoin reaching a
record high of $108,000 recently.
A key development this year was the approval of spot Bitcoin
and Ether exchange-traded funds (ETFs) in the United States. Vishal
Sacheendran, Head of Regional Markets at Binance, stated that India is set to
lead global cryptocurrency regulation by 2025. According to him, such
leadership could enhance trust and drive industry growth.
Binance Adapts to India’s Regulations
Binance has been adapting to India’s regulatory changes,
aiming to expand its presence and ensure compliance. Sacheendran emphasized the
importance of building a decentralized digital ecosystem, signalling a broader
focus beyond crypto trading.
India’s regulatory journey began in 2019 with a draft bill
proposing a complete ban on cryptocurrencies. However, this proposal was never
introduced in Parliament. Over time, India’s stance shifted, reflecting global
trends.
RBI Recommends Crypto Regulations in India
In a recent parliamentary session, Finance Minister Nirmala
Sitharaman stated that the Reserve Bank of India (RBI) had recommended creating
regulations for cryptocurrencies. She added that any ban would require
international cooperation.
The Indian government has implemented tax measures on
virtual assets. A 30% tax on crypto profits took effect on April 1, followed by
a 1% tax deducted at source (TDS) starting July 1. These policies have
reportedly reduced trading activity on Indian cryptocurrency exchanges.
Binance Fined for “AML Violations” in India
Earlier, India’s Financial
Intelligence Unit (FIU) fined Binance for violating the country’s
anti-money laundering regulations. It remains unclear when Binance will resume
operations in India, as reported by Finance
Magnates.
BREAKING: #Binance Fined $2.2 Million by FIU India🇮🇳 pic.twitter.com/BePVJD31p6
— Crypto India (@CryptooIndia) June 20, 2024
Binance was one of nine foreign cryptocurrency exchanges
blocked by the FIU in December. The block also required Apple and Google to
remove these exchanges from their app stores.
Under current regulations, cryptocurrency exchanges must
register with the FIU as reporting entities and comply with local anti-money
laundering rules. They are also required to withhold taxes on crypto
transactions and profits.
Among the blocked exchanges, Seychelles-based KuCoin was the
first to comply with Indian regulations, paying a penalty of 3.45 million
rupees within a month. Binance registered with the FIU in May, which allowed it
to restart its operations in the country.
This article was written by Tareq Sikder at www.financemagnates.com.